India, June 20 -- A sessions court on Thursday denied anticipatory bail to businessman Sudhir Valia, a director of Suraksha Asset Reconstruction Ltd, in a Rs.1,000-crore fraud case that also involves former Yes Bank managing director and chief executive Rana Kapoor, holding that the gravity of the allegations warranted custodial interrogation.

Additional sessions judge Anil D. Salunkhe held that the allegations pointed to a serious economic offence and that the investigation material did not indicate the case had been falsely registered.

"Considering the seriousness of the alleged economic fraud committed by the applicant with collusion of the officials of YES bank and its consequences, the custodial interrogation of the applicant is es...